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TIAA Henderson Real Estate acquires TK Maxx unit in Glasgow on behalf of Warburg Henderson

TIAA Henderson Real Estate (TH Real Estate), on behalf of its German joint venture, Warburg – Henderson, has acquired 36-48 Argyle Street in Glasgow, TK Maxx’s flagship Scottish store, in a £21.5m deal.

TIAA Henderson Real Estate (TH Real Estate), on behalf of its German joint venture, Warburg – Henderson, has acquired 36-48 Argyle Street in Glasgow, TK Maxx’s flagship Scottish store, in a £21.5m deal.

The asset was acquired from clients of Orchard Street Investment Management.

The 8,047 sq m retail block is located in a prime pitch on Argyle Street and is primarily let to TK Maxx until August 2025. The annual rental income is £1.3m per annum which will increase to c.£1.47m in 2015, reflecting a net initial yield of 5.71% and a reversion yield of 6.46%, assuming standard purchaser’s costs of 5.8%.

Martin Payne Fund Manager at TH Real Estate, said: “This deal represents a rare opportunity to acquire a modern retail block in one of the UK’s premier retail locations. The investment offers the Fund an attractive initial return with the benefit of a strong reversion in 2015.”

Andrew Shiells, Associate at Knight Frank LLP, said: “The purchase by one of Europe’s leading property fund managers highlights investor confidence that Glasgow is, and will remain, one of the UK’s strongest retail destinations despite the current uncertainty surrounding the Independence Referendum.”

TH Real Estate was advised by Knight Frank; Cushman and Wakefield represented the vendor.

Disclaimer Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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